Markets & Finance

InterActive Falls

August 03, 2004

InterActive Corp. (IACI) posted 9 cents, vs. 16 cents second-quarter GAAP earnings per share on a 1.7% revenue drop. It notes impact of increased amortization of non-cash expenses and more shares. The publishing and travel company sees $1 billion in 2004 operating income before amortization, at the low end of the original $1.0 billion to $1.2 billion forecast. S&P and CS First Boston downgraded the shares.

Meat processor Smithfield Foods (SFD) sees 45 cents to 50 cents first-quarter earnings per share, including the results of Farmland Foods. It notes the results include losses on its commodity positions.

Alpharma (ALO) posted 1 cent second-quarter earnings per share, vs. an 8-cent loss despite a 5% revenue decline (including foreign exchange). The drug company now expects U.S. generic revenues to decline about 15% in the second half of the year, and lowered the 2004 earnings per share guidance to 45 cents to 55 cents.

Integrated Circuit (ICST) posted 33 cents, vs. 23 cents fourth-quarter earnings per share on a 14% revenue rise. The company noted accounts receivable grew, and days-sales-outstanding were at 58 days for the fourth quarter.

Software maker Business Objects (BOBJ) says the Securities and Exchange Commission is considering civil charges against the company for its failure to disclose its backlog of unshipped orders.

Tommy Hilfiger (TOM) posted an 8-cent first-quarter loss, vs. 19 cents earnings per share (including special items) on an 11% net revenue decline. The fashion-design company reiterated the fiscal 2005 revenue decline in the high single-digit percentage range, and sees a fiscal 2005 earnings per share decline in the mid-teen percentage range.

Cigna (CI) posted $1.75, vs. $1.13 second-quarter earnings per share from continuing operations (excluding items) on flat revenues. The insurer raised the 2004 guidance to $835 million to $875 million in revenues, and now sees $5.95 to $6.25 earnings per share from continuing operations. JP Morgan downgraded to underweight from neutral. WR Hambrecht also CIBC World downgraded, while S&P keeps the hold ranking.

Eli Lilly (LLY) announced that the FDA had approved Cymbalta, judging it a safe and effective treatment for major depressive disorders.

Orbitz (ORBZ) posted 24 cents second-quarter earnings per share, vs. a 9-cent loss (GAAP) on 30% higher revenue. The online travel site sees 7 cents to 11 cents third-quarter earnings per share (reported pre-tax) on $72 million to $77 million in revenue. It maintains the 2004 guidance of 58 cents to 67 cents earnings per share (reported pre-tax) on $295 million to $305 million in revenue.